Windows XP SP3: An Upgraded XP or "Vista Lite?"

As a follow on to last week's Vista retrospective, a few more interesting data points on Microsoft's (MSFT) OS strategy.

From Slashdot 10/07/2007, Windows XP SP3 Build 3205 Released w/New Features:

Windows XP SP3 build 3205 is the first official & authorized release of the next Windows XP service pack; and has been made available to testers as a part of the Windows Server 2008/Windows Vista SP1 beta program. NeoSmart Technologies has the run-down on the included 1,073 patches/hotfixes including security updates. Contrary to popular belief, Windows XP SP3 does ship with new features/components, most of which have been backported from Windows Vista. Some included features: 'New Windows Product Activation model: no need to enter product key during setup. Network Access Protection modules and policies have been brought to XP after being one of the more-well-received features in Windows Vista. New Microsoft Kernel Mode Cryptographic Module - the Windows XP SP3 kernel now includes an entire module that provides easy access to multiple cryptographic algorithms and is available for use in kernel-mode drivers and services. New "Black Hole Router" detection - Windows XP SP3 can detect and protect against rogue routers that are discarding data.

And a few little tidbits from Engadget 10/09/2007:

It looks like Vista isn't the only OS Microsoft is working to improve, with the folks at Neosmart now reporting that a beta of Windows XP SP3 Build 3205 has been sent out to a select group of testers.

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All this, of course, follows the recent extension of XP sales until June of 2008, so it certainly seems that there's quite a bit of life left in the venerable OS that many are still clinging on to.

We know from earlier posts that both corporate IT departments and individuals are having a hard time reconciling the "benefits" of Vista versus XP, leading many to delay or outright reject deploying Vista in its current form. Well, the individual perspective was certainly driven home to Steve Ballmer at a Gartner symposium yesterday.

From Computerworld 10/10/2007:

"I'm one of those early adopters of Vista," said Yvonne Genovese, an analyst who was interviewing Ballmer along with fellow analyst David Smith on stage at a conference forum. "My daughter comes in one day and says, 'Hey Mom, my friend has Vista, and it has these neat little things called gadgets -- I need those.'"

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She went on to explain that she installed Vista for her daughter -- and two days later went right back to using the XP operating system. "It's safe, it works, all the hardware is fine, and everything is great," she said of XP.

Genovese also argued that her experience with Vista is broadly shared: "What we're seeing and what we're hearing from users is a very similar thing. It's difficult to implement. What should we be seeing that we're not seeing?"

Strategically, Microsoft's moves seem consistent with those of Sony (SNE) concerning its decision to cut backward compatibility out of PS3. Except instead of dumbing-down Vista (it is already dumb enough), they are enhancing XP. Bottom line, both strategies are geared towards protecting legacy franchises for products that work (either because of features, price or both), and buying time for new products to get the kinks hammered out before severing the umbilical cord.

Like Sony, Microsoft's move is economically rational IMHO, even if it is in response to a flawed strategy around Vista. What remains to be seen is if Vista ultimately has legs, and if corporations and individuals alike will move on from XP fast enough to keep Vista alive. Should be an interesting year for the folks from Redmond.